Opinion: Consumers should select their property insurers

Gov. Charlie Crist has until June 27 to act on House Bill 1171, which its sponsor says will allow consumers choice in picking property insurance, even from companies unregulated by the state.

State Rep. Bill Proctor, R-St. Augustine, sponsored HB 1171. He wants Crist to sign the final version of the bill into law or let it become law without his signature.

Crist disagrees with the bill. The Associated Press has quoted Crist as saying, "One of the things I don't want to see happen is an unfettered opportunity to raise property insurance rates. I'm looking at it with a jaundiced eye."

What's jaundiced about choice?

Crist, who calls himself the "people's governor," should support this bill. It has strong consumer protections. Consumers must be told in writing that the rate for the choice policy is unregulated and that a regulated rate policy is also available from other companies. Consumers would be encouraged to compare rates at the state Insurance Commissioner's Web site.

Crist is relying in part on State Insurance Commissioner Kevin McCarty's opinion. He said it is a bad bill because it allows large insurance companies to raise their rates outside the state's insurance regulation process. The Florida Property and Casualty Association, which represents small insurance companies, also is asking Crist to veto the bill for similar reasons. Proctor has challenged FPCA's reasoning in a nine-page letter to Crist.

What's wrong with choice if the consumer is willing to pay for it?

"No one is being forced to buy anything," Proctor says. "If the rates are too high, they can go somewhere else. It's all about choice."

We agree.

Florida TaxWatch, longtime state consumer watchdog organization, supports HB 1171. In a letter to Crist last month, Dominic Calabro, president and CEO, said, "You now have before you an opportunity to empower consumers to decide what property insurance to buy and at what price. There are no loopholes or hidden risk in these policies."

That's huge endorsement. If TaxWatch didn't like it, they would not be shy about it.

The Florida Chamber recently released the results of a poll by Public Opinion Strategies. It says that 60 percent of those polled say Crist should sign the bill, and 62 percent believe consumers should be allowed to choose their property insurance, even if the rates are unregulated.

The Florida Legislature approved the final version of HB 1171 overwhelmingly last spring? Doesn't that count for something?

The lineup of supporters of HB 1171 is impressive. In addition to the Legislature, TaxWatch and the Florida Chamber, among those on the list are: Legislative Black Caucus, Senate Democratic Leader Al Lawson, the Hispanic Chamber of Commerce, Associated Industries of Florida, Florida Bankers Association, Florida Association of Mortgage Brokers, Florida Home Builders Association, National Association of Insurance and Financial Advisors, National Association of Mutual Companies and others.

Governor, please approve this bill. Show Floridians that you have confidence in their ability to make the choice.

About the Chamber poll

The statewide telephone poll of 800 registered Florida voters was conducted May 27-29 by Public Opinion Strategies, Alexandria, Va. It had a margin of error of +/- 3.46 percent.